Better risk control helps Portuguese card issuer stay on top

CUSTOMER MANAGEMENT
Better risk control helps Portuguese card issuer stay on top
these past years,
“During
when economic conditions
in Portugal have shown slow
growth, the TRIAD system has
allowed us to minimize losses
and increase our business
revenues.
”
Felismina Pinto, Deputy Manager, UNICRE
Better risk control helps Portuguese
card issuer stay on top
UNICRE is Portugal’s largest card acquirer and one of its top
credit card issuers
Increased balances
by 10%
Challenge: Grow revenue and stay competitive despite deregulation of the
banking industry and changing economic conditions
Solution: FICO® TRIAD® Customer Manager
Results: Increased balances by 10% and lowered 3-cycle delinquencies by 30%
in the first year alone; improved customer service and operational efficiencies.
Reduced 3-cycle
delinquencies
by 30%
Improved
customer service
Portuguese credit card issuer UNICRE has faced an onslaught of challenges in
the past two decades, from banking deregulation to an economic slowdown.
FICO® TRIAD® Customer Manager has helped it confront these challenges head
on — and remain a significant player in the Portuguese card industry.
UNICRE selected the TRIAD Customer Manager system to automate its
customer management of credit lines and collections. Within the first year of
implementation, the system helped UNICRE improve risk control, grow revenue,
and increase operational efficiencies and customer service.
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1
CUSTOMER MANAGEMENT
Better risk control helps Portuguese card issuer stay on top
“We contacted several international
companies, and FICO was strongly
recommended for its products, quality
and support,” says Felismina Pinto,
UNICRE’s deputy manager. “During
the years we have worked together, we
were able to reaffirm FICO’s superior
performance and experience in this
business.”
UNICRE implemented FICO® TRIAD®
Customer Manager on a portfolio of
250,000 customers. Although this
represented a smaller portfolio size
than the typical TRIAD client, UNICRE
still saw strong results — for instance, a
10% increase in balances and 30% lower
3-cycle delinquencies in the first year.
“The TRIAD system provided us with
innumerable advantages and helped us
increase operational efficiencies,” adds
Pinto. “TRIAD flexibility and logic are the
main factors that led to our improved risk
control and customer service.”
Flexibility was a critical benefit with the
TRIAD system. UNICRE could design
strategies to meet specific objectives,
and adapt these strategies as economic
and business conditions changed.
TRIAD Customer Manager also allowed
UNICRE to clearly communicate these
new policies and policy changes to
customers.
“With the TRIAD system, we now have
a consistent, systematic and coherent
communication policy, with a positive
impact on the quality of service we
provide our customers,” says Pinto.
“For instance, we were able to design
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FICO® TRIAD® Customer Manager strategy yields 10% balance increase
at UNICRE
15%
FICO® TRIAD® Customer Manager
Non-TRIAD
10%
REPAYMENT ODDS
Strong initial results
5%
0%
-5%
0
2
4
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10
12
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a strategy regarding charges related to
payment delays and then communicate
it to customers. The system also allowed
us to develop a personalized credit
limit strategy, and forward tailored
letters, statement messages and emails
regarding the policy.”
Staying competitive
despite change
The past few years have brought a
slowdown of the Portuguese economy —
and thus, new challenges for UNICRE to
stay competitive.
“During these past years, when economic
conditions in Portugal have shown slow
growth, the TRIAD system has allowed
us to minimize losses and increase our
business revenues,” says Pinto. “We
were able to do this by always controlling
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risk while adjusting our credit line and
collections strategies.”
Despite the fluctuations in the
Portuguese economy and banking
industry, UNICRE remains the leading
acquirer and one of the top card issuers
in Portugal. The company plans to
expand its reach by introducing other
types of credit products, always bearing
in mind its goal of innovation.
“The TRIAD system has helped UNICRE
adapt to changing economic conditions,
allowing us to perform readjustments
according to company goals and
objectives,” says Pinto. “We can respond
quickly to whatever challenges come
our way — and that’s tremendously
beneficial.”
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FICO and TRIAD are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their
respective owners. © 2015 Fair Isaac Corporation. All rights reserved.
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